ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Daido Metal Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.39%.
As of today (2026-07-02), Daido Metal Co's WACC % is 5.83%. Daido Metal Co's ROIC % is 3.32% (calculated using TTM income statement data).
Daido Metal Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Daido Metal Co (TSE:7245) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Daido Metal Co's WACC % is 5.83%. Daido Metal Co's ROIC % is 3.32% (calculated using TTM income statement data).
Daido Metal Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Daido Metal Co ROIC % Related Terms
Daido Metal Co ROIC % Historical Data
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The historical data trend for Daido Metal Co's ROIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Parts subindustry, Daido Metal Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Daido Metal Co ROIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Daido Metal Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Daido Metal Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Daido Metal Co (TSE:7245) has a ROIC % of 4.39% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Daido Metal Co and its competitors.
Is Daido Metal Co's ROIC % too high?
Daido Metal Co's current ROIC % is 4.39%. The Vehicles & Parts industry median ROIC % is 5.07. Daido Metal Co's value of 4.39% is 13.4% below this industry median. Overall, Daido Metal Co has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daido Metal Co's ROIC % compare to ORLY and AZO?
Daido Metal Co's ROIC % of 4.39% can be compared against companies in the Vehicles & Parts industry. The industry median ROIC % is 5.07. Daido Metal Co's value of 4.39% is 13.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Vehicles & Parts company?
The median ROIC % among Vehicles & Parts companies is 5.07, based on 1,314 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Daido Metal Co's current ROIC % of 4.39% is 13.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Daido Metal Co and its competitors. For the Vehicles & Parts industry, the median ROIC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daido Metal Co's current ROIC % is 4.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daido Metal Co stock overvalued right now?
Based on GuruFocus' analysis, Daido Metal Co (TSE:7245) is currently considered Significantly Overvalued. The stock's GF Value™ is 円649.27, compared to a current price of 円1,771.00 — trading 172.8% above its estimated fair value. The current ROIC % is 4.39% and 13.4% below the Vehicles & Parts industry median of 5.07. Daido Metal Co's overall GF Score™ is 60/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Daido Metal Co (TSE:7245), the current ROIC % is 4.39% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Daido Metal Co (TSE:7245) Overvalued in 2026?
Based on GuruFocus' analysis, Daido Metal Co stock appears to be overvalued.
The current stock price of 円1,771.00 is trading 172.8% above its estimated GF Value™ of 円649.27.
GuruFocus considers Daido Metal Co to be Significantly Overvalued.
Key valuation signals for TSE:7245:
ROIC %: 4.39%
GF Value™: 円649.27 vs. price of 円1,771.00 (172.8% above fair value)
Industry Position: 13.4% below the Vehicles & Parts median
No single metric tells the full story. See the TSE:7245 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daido Metal Co Ltd manufactures and sells a variety of bearings including automobile engine bearings and large ship engine bearings. The company has a production and sales network in the five-hub system of Japan, North America, Europe, Asia, and China. It manufactures bearings for trucks, construction and agricultural machinery, and bearings for automobile parts such as turbochargers and shock absorbers. Its products portfolio includes metal-polymer bearings, metallic bearings, engine bearing, turbomachinery bearing systems, modular products, pump, centralized lubrication, capacitors and semi-dry processing which are used in including automotive, marine, construction machinery, agricultural machines, industrial, energy, infrastructure and transportation, leisure, and household appliances.
60GF Score
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